Government support for Indian startups

(Last revised Mar-2012, Send comments to galatime@gmail.com)

Technology ventures in India must seriously consider (financial) support from the government during their early years.
In response to the big gap in very early-stage risk capital (Rs 5 lakh - Rs 1 crore),
the GoI has launched a variety of funding schemes.
These range from outright grants for individuals to (matched) soft loans and equity capital for private limited companies.

Obviously, such support comes with its own constraints in terms of timelines, flexibility, documentation needs, etc.

There are indirect sources of government support as well.
For example, a science venture with an R&D lab can get an exemption from the customs & excise duties, if it obtains DSIR recognition.
Considering that such duties on (expensive!) imported equipment can add 25%+ to the cost, the exemption is a huge benefit.

To tap GoI support for your startup:

Strategically use it as a complement to your capital, as early on as possible.

Build relationships with GoI-funded incubators,
who run/understand these funding schemes.

Maintain a track record of good proposals, timely execution & transparent, detailed paperwork.